Nyba.retail and small business conference.march 15 2013.v1
Building a Brand: Value Systems & Value Propositions
1. MZ BIERLY CONSULTING
Building the Brand. . .
Value Systems and Value
Propositions
Buck Bierly
MZ BIERLY CONSULTING, INC.
610-296-4772
bbierly@mzbierlyconsulting.com
3. What’s of “Value” to the Decision Makers in a Business?
What does a Business Owner/Decision Maker Value?
It depends. . . on the level of relationship the Decision Maker wants.
1. In some cases, the Decision Maker will “freeze” you at a level of
relationship
2. In other cases, the Decision Maker will expect you to lift to a
higher level of relationship
3. In other cases, a Decision Maker is unsure of what is possible in a
relationship.
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4. Determining the “Value” for your “Value Proposition”
So “Value” is defined differently by different Business Owners and
Decision makers; it depends on his/her value systems.
To effectively execute a “value proposition”, the Banker needs to:
1. Determine the level of relationship [value system] the Business
Owner/Decision Maker is “looking for”
2. Adjust his/her “value proposition” to align with the Business
Owner’s/Decision Maker’s value system
Simply stated, a “value proposition” is the Banker demonstrating
to the Business Owner/Decision Maker, “Here’s how I will align
with the level of relationship you are “looking for”
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5. Levels of Relationship and Relationship Development
1. Not all Relationships are the same
2. Not all Decision Makers want the same level of relationship with a Bank
3. Not all Bankers can build all levels of relationship with a Decision Maker
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6. Levels of Relationship and Relationship Development
Contribute to
Organizational Issues
Level 1: A Commodity
If all banks with whom you compete meet Contribute to
the required minimum specifications, then Business Issues
you are indistinguishable from your
competitors. If you’re merely pushing a Provide “Good”
product rather than developing a Service and Support
relationship, then your only bargaining chips
are price and structure. An insecure Deliver “Good” Product
position. and/or Service
Deliver Commodity that
1 Meets Specifications
Competition is High
Price Sensitivity is High
Importance of Features is High
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7. Levels of Relationship and Relationship Development
Level 2: Providing “Good” Products
Any product or service feature that sets
you apart from the competition, that gets Contribute to
you recognized by your customers as an Organizational Issues
innovator, can help you establish Level 2
relationships. An improvement, but “good Contribute to
products” is still a tenuous relationship Business Issues
position.
Why? Even if you establish a competitive Provide “Good”
Service and Support
position with bells and whistles (or faster
service or other add-ons), eventually the
competition not only catches up but Deliver “Good” Product
2 and/or Service
leapfrogs over you, and you’re back to
selling commodity-style again, with the
“distinctive” features now part of Deliver Commodity that
everybody’s arsenal. Meets Specifications
Competition is still High
Price Sensitivity is still High
Importance of Features is High
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8. Levels of Relationship and Relationship Development
Level 3: Dedicated Service
What gets you to Level 3 is the Client’s
Contribute to
understanding that they are getting Organizational Issues
something more than your other clients
are getting.
Contribute to
At Level 2 you install a bug-free TM Business Issues
“system” on time, for all your customers; at
Level 3, you provide a system training Provide “Good”
program that is tailored to a specific 3 Service and Support
customer’s skill sets.
At Level 2 you provide everyone with round- Deliver “Good” Product
and/or Service
the-clock tech support; at Level 3, you give
one Client a dedicated help line.
Deliver Commodity that
Meets Specifications
Competition is Moderate
Price Sensitivity is Moderate
Importance of Features is Moderate
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9. Levels of Relationship and Relationship Development
Level 4: Crossing to Business Issues
On Level 4, clients perceive that you provide
good products and extra service, but also Contribute to
Organizational Issues
understand their business issues; you
understand their business problems and
objectives almost as well as you do your Contribute to
4 Business Issues
own.
At Level 4, you generate ideas for
Provide “Good”
addressing not just customers’ day-to-day Service and Support
operational needs but their ongoing concerns
about things like profit, productivity, and go-
Deliver “Good” Product
to-market strategies. Your ideas provide not and/or Service
just products and service that address those
concerns, but a range of ancillary supports
that may have virtually nothing to do with Deliver Commodity that
Meets Specifications
your product or service.
Competition is Low
Price Sensitivity is Reduced
Importance of Features is Moderate
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10. Levels of Relationship and Relationship Development
Level 5: An “External Asset”
In benchmarking studies, the Contribute to
5 Organizational Issues
Client/Prospect’s most common complaint
is that the “suppliers” who wanted their
Contribute to
business did not understand their business Business Issues
problems.
Most banks were locked into “product- Provide “Good”
selling mode”, when what they want is Service and Support
expert consultation. If you can provide that
kind of consultation, you’ve got a shot Deliver “Good” Product
Level 5. and/or Service
The differentiation you achieve at this
level can be extraordinary.
Deliver Commodity that
Meets Specifications
Competition is Very Low
Price Sensitivity is further Reduced
Importance of Features remains Moderate
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11. Visit Our Website for Additional Webinars and Our Newsletters
Take a few minutes to explore our
website. . .
Register for our blog and email
newsletters. Each month you’ll get
suggestions, tips, and how-to’s to take
your relationship development and
sales leadership processes to the next
level.
To find out more about all of our services
for commercial and small business
teams, visit mzbierlyconsulting.com or
call Ned Miller at (610) 296-4772 or email
him at nmiller@mzbierlyconsulting.com
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